Wonder Sales Is Authorized to Issue 100,000 Shares of 2

question 66

Essay

Wonder Sales is authorized to issue 100,000 shares of 2%, $100 par preferred stock and 1,000,000 shares of $10 par common stock. Journalize the following transactions.
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(a) On January 2, Wonder Sales issues 5,000 shares of preferred stock for $110 per share and 65,000 shares of common stock at $10 per share.
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(b) On January 25, Wonder Sales issued 250 shares of preferred stock to a Morton Law Firm for settlement of a $36,000 invoice for incorporation services.
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(c) On January 31, Wonder Sales issues 500 shares of common stock to Setup Inc. for fixtures that have a fair market value of $8,500.

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Definitions:

Interchangeably

Used to describe terms, items, or concepts that can be used in place of each other without affecting the overall meaning or function.

Organizations

are structured groups of people who come together to pursue common goals or perform specific functions, often within a defined hierarchy or framework.

Groupthink

The practice of thinking or making decisions as a group in a way that discourages creativity or individual responsibility.

Intrinsic Motivation

A drive to perform or engage in activities for their inherent satisfaction and interest, rather than for some separable consequence.